State health ministers have welcomed as a good start the Federal Government's announcement that $250 million will be spent to train more doctors and nurses over the next four years.

The ministers are still studying the details of the announcement, but say more needs to be done.

Prime Minister John Howard released details of the initiative at the Victorian Liberal Party Council meeting in Melbourne yesterday, saying there will eventually be an extra 400 places for medical students around the country each year.

The Victorian Government says the state still needs more places for medical students, on top of the places announced by the Federal Government yesterday.

Victoria will receive at least 160 of the 400 new places, for medical schools at Deakin University in western Victoria and Monash University in Gippsland.

"It's good that the Commonwealth has made a down payment on our medical training places but clearly we are going to need a lot more if we are to replace those who are retiring and meet the needs of our hospitals and general practice clinics," Ms Pike said.

Ms Pike has welcomed allocation of the new medical places in regional Victoria.

"The Government has already put up $30 million as a means of establishing some medical school facilities in country Victoria," she said.

"We're very pleased, now that the Commonwealth has made the announcement, that Deakin and Monash will expand medical school places in Victoria."

'Not enough'

Meanwhile, the New South Wales Government says it will still need to recruit doctors and nurses from overseas, despite the Government's program.

NSW Health Minister John Hatzistergos says the package is a step in the right direction, but does not go far enough.

"The issue is not going to go away with this announcement," Mr Hatzistergos said.

"Whilst we welcome it as a start, it doesn't fulfil work force shortages that we are facing. We'll continue to have to recruit overseas for our immediate needs and also until these additional positions come on line and potentially beyond that, if further places do not come on line."

Tasmania's Health Minister has also welcomed the Federal Government's announcement.

Health Minister Lara Giddings says it is a welcome acknowledgment that many more professionals are needed to help address problems in the nation's health system.

However, Ms Giddings says she is concerned about the Federal Government's call for the states to match its funding.

She says for years the Federal Government has been shifting the cost of health to the states.

Ms Giddings says she will study the fine print to see exactly what impact the announcement will have on Tasmania.

The South Australian Government is seeking 40 of the new medical training.